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Mortgage Calculator Canada

Canadian fixed-rate mortgages compound interest semi-annually by law, not monthly, which makes the effective rate slightly lower than a naive monthly calculation. This calculator applies that convention, so the payment you see matches how Canadian lenders actually compute it.

Semi-annual compoundingIn dollarsNo sign-up

Your numbers

CA$
Down payment
%
= CA$130,000 down
Loan term
%
Canadian fixed rates compound semi-annually. This calculator uses that convention, not monthly.
Estimated monthly payment
CA$3,770/mo
Principal
CA$88023%
Interest
CA$2,14457%
Property tax
CA$59616%
Home insurance
CA$1504%
Loan amount
CA$520,000
Total interest
CA$387,304
Total cost
CA$1,131,054
principal, interest & fees
Payoff
Jun 2051
25 yr
Over the life of the loan

Loan balance over time

CA$0CA$130KCA$260KCA$390KCA$520K5y10y15y20y25y
Crossover in year 12, the point where more of each payment builds equity than pays interest.

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Full breakdown

Amortization schedule

Every payment, split into principal and interest. Export it or print a copy.

YearPrincipalInterestBalance
2026CA$5,334CA$12,812CA$514,666
2027CA$11,072CA$25,220CA$503,594
2028CA$11,632CA$24,660CA$491,962
2029CA$12,221CA$24,071CA$479,741
2030CA$12,840CA$23,452CA$466,901
2031CA$13,490CA$22,802CA$453,411
2032CA$14,173CA$22,119CA$439,238
2033CA$14,890CA$21,402CA$424,348
2034CA$15,644CA$20,648CA$408,704
2035CA$16,436CA$19,856CA$392,267
2036CA$17,268CA$19,024CA$374,999
2037CA$18,142CA$18,150CA$356,857
2038CA$19,061CA$17,231CA$337,796
2039CA$20,026CA$16,266CA$317,770
2040CA$21,040CA$15,253CA$296,731
2041CA$22,105CA$14,187CA$274,626
2042CA$23,224CA$13,068CA$251,402
2043CA$24,400CA$11,893CA$227,003
2044CA$25,635CA$10,657CA$201,368
2045CA$26,932CA$9,360CA$174,435
2046CA$28,296CA$7,996CA$146,139
2047CA$29,728CA$6,564CA$116,411
2048CA$31,233CA$5,059CA$85,178
2049CA$32,815CA$3,478CA$52,363
2050CA$34,476CA$1,816CA$17,887
2051CA$17,887CA$259CA$0
The Canadian difference

Why semi-annual compounding matters

Canadian law requires fixed-rate mortgages to compound interest no more than twice a year. To turn a quoted annual rate into a monthly payment, the effective monthly rate is (1 + annual ÷ 2)1/6 − 1, not simply annual ÷ 12. The difference is small on any single payment, but over a 25-year amortisation it is real money, and using the wrong method overstates your payment. This calculator uses the correct semi-annual convention.

Terms and amortisation

Term is not the same as amortisation

In Canada the term (often five years) is how long your rate is locked, while the amortisation (often 25 years) is how long the full loan takes to repay. When the term ends you renew at whatever rate is then available. This tool models the full amortisation at a single rate, which is the right way to compare loans and see total interest.

Insurance

CMHC insurance under 20% down

If your down payment is under 20%, Canadian rules require mortgage default insurance, commonly from CMHC. The premium is a percentage of the loan that rises as your down payment shrinks, and it is usually added to the mortgage balance. Factor it in when you compare a smaller down payment against saving for 20%.

Keep going
Canadian semi-annual compounding explainedHow amortization worksMethodology
Questions & answers

Frequently asked

Why does Canada use semi-annual compounding?
It is set by the federal Interest Act for fixed-rate mortgages. Interest may be compounded at most twice a year, which slightly lowers the effective rate compared with monthly compounding.
What is the difference between term and amortisation?
The term is how long your rate is fixed, commonly five years. The amortisation is how long the whole loan takes to repay, commonly 25 years. You renew the rate each time the term ends.
Do I need CMHC insurance?
If your down payment is under 20%, yes, mortgage default insurance is required. The premium depends on your down payment and is usually added to the loan balance.
Does this calculator use the correct Canadian math?
Yes. It converts the annual rate to a monthly effective rate using semi-annual compounding, the legal standard, rather than dividing by twelve.
MF
Marcus Fielding· Mortgage analyst & editor
Published June 2026 · Updated July 2026
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